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Statement of Principles for HEAP energy relief efforts

Economists know that when the cost of basic goods like energy increase, quality of life of decreases most for people with lower incomes. This is an important issue that government agencies should consider when estimating the effects of regulations.

In September 2008, New York State Governor David Paterson announced a package of initiatives to assist New York households with their energy costs. This package includes an increase in spending on the Home Energy Assistance Program (HEAP). HEAP provides a subsidy individuals use to purchase their electricity.

Policy Integrity issued a Statement of Principles to guide lawmakers when considering energy relief efforts. Most important, subsidies should not encourage inefficient energy use. This Statement was distributed to a number of lawmakers, officials, and environmental groups.